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Sunday, 9 July 2017

(The Star) Johor to impose new charges

KLUANG: Beginning Sept 1, the Johor state government will impose a development charge of between 10% and 30% on approved projects that are altered.

Housing and Local Government Committee chairman Datuk Md Jais Sarday said the charge would be imposed on those who change the status of their land, increase the density of a project and increase the floor size in their development.

“For example, a piece of land which is designated for agriculture is valued at RM5 per square foot and when the status is changed to housing and its value goes up to RM15 per square foot, then a development charge will be imposed," he added.

Jais said the same charge would be imposed on someone who initially planned to build 100 houses in a project but decided to increase the density to 150 houses.

“Charges will also be imposed if they decide to change the floor size of their project,” he told reporters during his Hari Raya open house here yesterday.

Jais said the new charges were payable to the local council.

He added that the maximum charge of 30% would be imposed on development projects within the seven international zones, 25% under the Johor Baru City Council’s jurisdiction, 15% for those covered by local councils and 10% by district councils.

He said Selangor had imposed a similar charge since 2010, Perak in 2012, Kelantan in 2015 and Terengganu early this year.

He said the money collected would be used to improve public amenities, including to acquire land to carry out plans under the local authority.

On another matter, Jais said he would meet with the Real Estate and Housing Developers Association on July 16 to discuss the glut of unsold properties, which totalled 88,558 designated for bumiputras within the state.

He added that they would need to find a mechanism to resolve this issue.

The Star earlier reported that there was a glut of bumiputra properties worth tens of million of ringgit, comprising condominiums, apartments, shoplots, industrial lots and luxury houses.